Car Refinance Calculator

Enter your current auto loan and the new rate and term to see the new payment, how much you save each month and over the whole loan.

Compare your current car loan with a refinanced loan.

Current loan balance ($)

Current interest rate (%)

Months remaining on current loan

New interest rate (%)

New loan term (months)

Refinance fees added to loan ($)

How car refinancing saves money

Refinancing replaces your current auto loan with a new one, ideally at a lower interest rate. The new lender pays off the old loan and you make payments on the new one. Whether you come out ahead depends on three things: the rate drop, the new term and any fees. A lower rate cuts interest, but stretching the loan to a longer term can lower the payment while raising the total you pay. This calculator rebuilds your current payment from the balance, rate and months left, then compares it with the new loan including fees.

Example: $22,000 balance, 9.5% with 48 months left, refinanced to 6.5%

The current payment is about $553 a month. With $150 of fees rolled in, a 48-month loan at 6.5% costs about $525 a month, saving about $27 a month and $1,316 overall.

New term	New payment	Monthly saving	Overall
36 months	$679	$-126	saves $2,091
48 months	$525	$27	saves $1,316
60 months	$433	$119	saves $527

When refinancing a car loan makes sense

Your credit improved since you took the loan, or market rates fell.
You are early in the loan, when most of each payment is still interest.
You owe less than the car is worth. Many lenders will not refinance a loan larger than the vehicle’s value.
Keep the term similar. A much longer term can lower the payment but raise the total cost.

Compare with the car loan calculator and the car finance calculator. This is an estimate for a fixed-rate loan, not a loan offer or financial advice; your lender’s figures are what count.

How to use the car refinance calculator

Enter your current balance, interest rate and the months left on the loan.
Enter the new rate, new term and any fees added to the loan.
Compare the payments, the monthly saving and the total over the loan.

Frequently asked questions

How do I know if refinancing my car loan will save money?

Compare the total you will pay on the current loan with the total on the new one, including fees. In the example above, refinancing from 9.5% to 6.5% saves about $27 a month and $1,316 overall.

Does refinancing a car loan hurt my credit score?

Applying causes a small temporary dip from the credit check, and a new account lowers your average account age slightly. Paying the new loan on time usually offsets this.

Is a longer term a good idea when refinancing?

A longer term lowers the payment but usually raises total interest. If you extend the term, check the overall figure in the calculator, not just the monthly payment.

Can I refinance if I owe more than the car is worth?

It is harder, because many lenders limit the loan to the car’s value. A larger down payment or paying down the balance first can help.

When should I refinance a car loan?

Usually when rates have dropped, your credit has improved, or you are early in the loan and still paying mostly interest.

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